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Downer first won the seat of Mayo at its creation at the 1984 federal election. He retained the seat at each subsequent election. The 2007 Labor-Liberal two-party-preferred margin was the narrowest in the seat's history. Except for 1998, the seat has been won at each election by the Liberals on primary votes alone. Despite this, the Australian Democrats and independents have traditionally polled well, including two elections where the Democrats and independent Brian Deegan came second.[4]

At the 2007 federal election, Downer retained his seat against his main Labor Party competitor by a two-party preferred margin of 57.06% to 42.94%.[5] However, the opposition Labor Party defeated the incumbent Liberal-National coalition government, the first change of government in over 11 years. Alexander Downer had served as Foreign Minister throughout the duration of the previous government. He was also Liberal leader and leader of the opposition for several months in 1994.

On 3 July 2008, Downer announced his intention to resign his seat. He officially resigned from parliament on 14 July.[6] He, with Mark Vaile in Lyne, became the next former Howard government ministers returned at the 2007 election to resign their seats. Peter McGauran had done likewise earlier in 2008.

The candidature of Liberal Jamie Briggs was criticised because of his role in controversial industrial-relations policies and reports that some Liberal Party colleagues were unhappy with his preselection.[22]Bob Day, who had held membership of the Liberal Party for 20 years and was the endorsed Liberal candidate for Makin in 2007, quit the party after failing to win Mayo preselection by 10 out of 271 votes,[23] citing a "manipulated" preselection process.[24]Iain Evans, who came second to Briggs, agreed to some extent.[25]

The Liberal Party retained the seat on 53 per cent of the two-candidate preferred (2CP) vote against the Greens.[26][27] Some commentators drew comparisons between this and the 2002 Cunningham by-election.[28] The reduction in the Liberal margin was caused in part by asymmetric preference flows in the absence of a Labor candidate, with seat results returning to form at subsequent elections such as with Cunningham.